Mahesh Babu Faces Legal Notice in Rs 34 Lakh Real Estate Fraud Case

The Ranga Reddy District Consumer Forum has issued notices to actor Mahesh Babu following an investigation by the Enforcement Directorate (ED) in April. This probe is related to an ongoing money laundering case, as reported by the Deccan Chronicle.

The complaint was filed by a Hyderabad-based doctor, who alleged that she and other individuals were cheated by two Hyderabad-based real estate firms, Sai Surya Developers and Surana Group. These firms were advertising unauthorized real estate projects. Mahesh Babu, who served as the brand ambassador for a project called ‘Green Meadows’ under Sai Surya Developers, received Rs 5.9 crore as payment—Rs 3.4 crore via cheque and Rs 2.5 crore in cash. The actor has been named as the third respondent for allegedly misleading buyers.

The complainants were misled by the advertisements and ended up purchasing plots worth Rs 34.80 lakh each in the Balapur village, under the impression that a legitimate layout existed. However, it was later revealed that they had been cheated out of their money.

The investigation is being conducted under the Prevention of Money Laundering Act, 2002, pertaining to the alleged non-delivery of real estate projects. Both firms are accused of repeatedly selling the same plot of land to unsuspecting buyers after receiving advanced payments.

On April 16, the ED carried out a probe at several locations linked with the case, including premises in Secunderabad, Jubilee Hills, and Bowenpally. According to the Times of India, financial transactions amounting to Rs 100 crore by the firms have been flagged as illegal activity.

This case highlights the importance of due diligence and transparency in the real estate sector, especially when celebrities are involved in promoting projects. Consumers are advised to verify the authenticity of real estate projects before making any investments.